We buy the land under your building or your project and lease it back for 99 years. You keep the building and the upside; the land cost comes out of the stack at a fixed, non-amortizing cost, with no maturity, no promote and no one to buy out. Below roughly $35 million of total cost we are the buyer, on our own balance sheet. Above it we structure the split and take it to every buyer whose box it fits.
Sell us the land under the building or the project, keep the building and the upside, and pay a rent sized to what the property can carry. The proceeds replace the most expensive piece of the stack.
The land contract funds day one; the balance comes through milestone draws after sponsor equity spends first. The construction lender sizes the building, not the dirt.
Construction financing →Land proceeds at a fixed, non-amortizing cost, no maturity, no promote, no one to buy out. The piece that grinds the GP goes away.
Replacing preferred equity →When the new loan sizes short, the land covers the difference without a capital call or a second mortgage.
Solving a loan maturity →A project that stopped mid-construction still sits on land we can buy today. Completion capital without a rescue lender’s terms.
Completion capital →Hotels carry the widest yields in commercial real estate, so the spread over a ground cap unlocks the most land value relative to total cost.
Hotel ground leases →The land is the way out. We sit ahead of nothing except the lease, and we never sit behind PACE.
C-PACE and the land →Rent is a share of stabilized NOI, 20 to 30 percent, from your own proforma.
Price is the rent capitalized at a long-term land yield. If the NOI moves, the price moves with it, both directions.
Unsubordinated, fixed escalations, never a market reset. The form every leasehold lender accepts.
We are the buyer and we have already decided. The clock is title and your lender, not our committee.
Run the numbers on your own building. · What an indicative land bid looks like.
A ground lease splits one building into a land position and a building position. We hold the land; the building stays with the sponsor or goes to an income buyer. As the shelf grows, each half becomes replacement property for a 1031 exchanger with a clock, or current income for a leasehold investor. That second business is a byproduct of the first: the more deals we originate, the more there is to sell. 1031 Solutions · See the two halves.
99-year unsubordinated lease, fixed escalations, nothing to manage. For the exchanger who wants to not pay the tax and never take a call.
The income and the depreciation, on the same land under the same lease. For the investor who needs yield now.
Below roughly $35 million of total cost we buy the land ourselves, on our own balance sheet, and write the lease to the standard every leasehold lender uses.
For owners and developersAbove that size we structure the split, arrange the leasehold debt, and run the land sale to the whole buyer pool, not one committee.
For larger dealsWhole leased-fee and whole leasehold positions from the deals we originate, kept on a shelf for exchangers whose first choices fell out.
For investors and their intermediariesWe are flexible on the things that kill deals for no good reason: size, market, timing, how the price is built when land value and project cost disagree, how a sponsor’s equity and pre-development spend are credited. We are rigid on the things that make a leasehold financeable, because that is what makes the deal close. Gentle on structure, immovable on the lease. How we got here.
We buy the land under commercial buildings and projects and lease it back for 99 years, so the owner or sponsor takes the land cost out of the capital stack and keeps the building. Washington, DC, founded 2015. Below roughly $35 million of total cost we are the buyer with our own capital; above it we structure the split and run the land sale as advisor.
Rent sized at 20 to 30 percent of stabilized NOI, escalating 2 percent a year with a capped inflation test every ten years. Against the proceeds that is a fixed, non-amortizing cost with no maturity, no promote and no one to buy out, compared with 10 to 15 percent for preferred equity or mezzanine.
Send stabilized NOI, total cost and the address and you get an indicative land bid built the same way every time: rent as a share of NOI, price as rent divided by the ground cap. Days, not weeks. We are the buyer and we have already decided.
Yes. The lease is written to the standard every leasehold lender uses: fee never subordinated, term running at least thirty years past loan maturity, fixed escalations with no market reset, rent paid without offset. That is the one place we do not negotiate, because it is what makes the leasehold financeable.
We hold them, and as the shelf grows we sell whole positions to 1031 exchangers who need replacement property with a fixed price and date, and whole leaseholds to investors who want income. Fractional structures are arranged privately with licensed partners and never offered on this site.
Stabilized NOI, total cost and the address. You get an indicative land bid, built the same way every time, in writing. Investors: the inventory is on the 1031 Solutions page.
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